Funerals can be expensive, and many people opt to put some money in their ISAs or savings accounts later in life in order to contribute towards those costs. Unfortunately, savings cannot adequately protect your loved ones against the rising funeral costs.
In 1997, the average funeral cost about £1,230. By 2007, the cost had increased to £2,270; an increase that is above the general level of inflation. If the cost of funerals continues to rise at this rate, the average funeral could cost over £4,000 by 2017. Industry statistics show that funeral costs have increased by close to 60 percent in only the last seven years, leaving families with massive unforeseen bills of around £3,500.
The business of planning your own funeral is growing in the UK, and the industry is estimated to be worth more than £500 million a year. Many people have peace of mind after taking a funeral plan because they’re guaranteed to cover all the expenses of the agreed funeral arrangements, irrespective of any forthcoming rise in price.
Go through the fine print: While you may be offered the option to pay for your plan in installments, you should know that paying for anything over time typically costs more since it incurs interest. Still, considering the low interest rates associated with a savings account, contributing progressively to your funeral plan may still be the best option. And look for hidden costs.
Shop around: We are not worried about telling you that as we are sure we are the lowest priced pre-planned – While pre-pay plans relieve your family of financial burdens, you only get good value for money if it is the best option when measured against the actual costs of any alternatives. When choosing a pre-pay plan, it is important that you identify exactly what you’re paying for against doing everything individually, keeping in mind the inflation rate. And only work with a company that is part of a professional body, like the Funeral Planning Authority.
Besides traditional savings and life-insurance cover, some people can choose to have a home burial, if approved by your local authority, local police, and environmental health. However, you should think about the likely impact of a home burial on the value of that property. In our view a well planned and prepaid funeral plans are the best options, gives us a call and lets see how we can help you.
Buying a Funeral plan stops cost increasing Funerals can be expensive, and many people opt to put some money in their ISAs or savings accounts later in life in order to contribute towards those costs. Unfortunately, savings cannot adequately protect your loved ones against the rising funeral costs. In 1997, the average funeral cost about […]